Hummus Exchange
  • Welcome to Hummus Exchange
    • Next-gen protocol design
    • Limitations of current stableswap protocols
    • The Yellow paper
    • A Platypus Finance fork
  • Tokenomics
    • Token: HUM and veHUM
    • Distribution
    • Vesting
  • Concepts
    • Coverage Ratio
    • Hummus Exchange Interest Rate Model
    • Fees
    • Swap Slippage
    • Withdrawal Fee
      • Withdrawal Arbitrage: The Risk of Attacks on the protocol
      • The countermeasure against withdrawal attacks
    • Deposit Fee
    • Haircut
  • Security
    • Audits
    • Price Oracle
    • Economic Risk
    • Impairment Loss
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  1. Security

Price Oracle

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Last updated 3 years ago

Hummus Exchange pool design for stablecoins assumes the peg is maintained, however, it is possible that one of them becomes unpegged due to unforeseen reasons. Hence, Hummus Exchange tracks each token’s exchange rate via , helping protect liquidity providers deposits in case of an unpeg of more of 2% (max price deviation).

The use of an oracle is then seen as an additional layer of security for LP. In case there is significant price deviation detected by oracle, this will stop all trades to and from that asset, and also disable withdrawInOtherAsset for that asset.

Please note also that in the case of a bank run (which does not imply unpeg), LP providers may be obliged to withdraw in the most covered asset in the pool.

DIA